Who has the authority to terminate a Chocolate Bash Market Cooperative?

According to Chocolate Bash's 2024 Franchise Disclosure Document, CB Franchising has the authority to terminate any Market Cooperative. Upon termination of a Market Cooperative, any remaining funds will be transferred to the Marketing Fund.

Market Cooperatives, if established by Chocolate Bash, are designed to administer regional advertising and marketing programs. These cooperatives also develop standardized promotional materials for local advertising and promotion, subject to Chocolate Bash's approval. Franchisees are required to join a Market Cooperative if one exists for their geographic area, becoming a member either immediately upon commencing operations or within 30 days of the cooperative's establishment during the term of their Franchise Agreement.

While the activities of a Market Cooperative are typically decided by a majority vote of its members, Chocolate Bash retains significant control. The franchisor can attend and participate in any Market Cooperative meeting and has the same voting rights as franchisees for any Chocolate Bash businesses it owns within the cooperative. Furthermore, Chocolate Bash can assume decision-making authority if the members are unable to agree on how to spend the Market Cooperative's funds, provided they give 10 days' notice.

Chocolate Bash also has the right to enforce the obligations of franchisees to contribute to the Market Cooperative. This structure ensures that while franchisees have a voice in regional marketing efforts, Chocolate Bash maintains ultimate control over the Market Cooperative's operations and its continuation.